According to the U.S. Treasury Department, a total of 847 U.S. small banks applied for less than half of the $30 billion in capital available from the federal program, the Small Business Lending fund, to increase small-business lending. The banks sought $11.6 billion. June 6 and of those who applied, 315 were seeking to use the funds to replace capital they had received earlier in the bailout for banks, from the Treasury’s Troubled Asset Relief Program.
The Treasury said the $30 billion, available only to lenders with less than $10 billion on assets may generate as much as $300 billion in new loans.
Still, many small businesses could not get loans from their local banks. Survival in many cases was aided by factoring services from factoring companies. Invoice factoring enables cash flow, a necessity among small business owners.
